An enduring power for financial decisions is a legal document that helps you plan for your future.
In it you can appoint a trusted person (or more than one person) to make decisions about your finances and property. Things like paying your bills or selling your home, if needed.
It’s called an ‘enduring power of attorney’ throughout Australia, except in the Northern Territory, where it’s called an ‘Advance Personal Plan’.
It’s important to plan ahead because life can be unpredictable.
Some illnesses, like dementia, can gradually reduce your ability to make some decisions.
Or a serious injury, stroke, or car accident can make you suddenly unable to make some decisions.
Making an enduring power for financial decisions is a way to plan for the future that is available to all adults in Australia, regardless of your background or age.
Whoever you appoint can step up to help manage your finances if you don’t have decision-making capacity to make these decisions.
To make one you need to have decision-making capacity to do so, and be making it voluntarily, without being pressured by anyone else.
If you decide to make one, your most important decision is choosing who to appoint.
Not everyone close to you will be right for the role.
It is important you choose someone you trust because they may be responsible for making decisions for you.
It’s also important to regularly review your choice.
Ask yourself, “Are there risks if they were to stay in the role?”
There are risks if they have problems with gambling, drug, or alcohol addiction, are experiencing financial difficulties, or put pressure on you.
If it doesn’t feel right, trust your instincts.
At any time, you can cancel the enduring power for financial decisions, as long as you have decision-making capacity to do so.
You can appoint someone else. Or you have the option of appointing someone independent, like a public trustee.
When thinking about who to appoint, think about what matters to you.
Is it important that they listen to and respect your wishes?
That they understand your culture and connections?
That they can manage property and money well?
Check with the person or people that they are happy for you to appoint them, because the role comes with responsibility.
No matter where you live in Australia, the responsibilities include:
acting with honesty, care, and diligence
not profiting from the appointment
avoiding conflicts between their interests and yours
keeping accurate records of the financial decisions they make
keeping your money and property separate from their own (apart from property you own jointly), and
acting to protect and promote your interests.
Remember, you decide what’s best for your future financial decisions.
This video was developed by the Office of the Public Advocate (Victoria) on behalf of, and in partnership with members of the Australian Guardianship and Administration Council (AGAC).
The project was funded by the Australian Attorney-General’s Department.
The information in this video is a general guide only. Viewers may require legal advice for their specific circumstances. AGAC and the Office of the Public Advocate (Victoria) expressly disclaim any liability howsoever caused to any person in respect of any action taken in reliance on the contents of this video.
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